Denying media reports that the State government had returned ₹3,600 crore in Central funds, Chief Minister Edappadi K. Palaniswami on Sunday said the State had fully utilised the Central funds.
Speaking at a function in Salem, Mr. Palaniswami said, “A false news has been published that the State government has returned approximately ₹3,600 crore of Central funds without utilising them. There has never been a situation where the State had returned Central funds.”
Mr. Palaniswami said that every year, during the Budget, funds were allocated for Central schemes based on the amount expected to be received from the Union government.
“If the expected amount is not released by the Centre to the State during a financial year, the State would not be able to allocate funds for the projects, and it is considered as savings,” he said.
“When the funds are released during the next financial year, it is used by the State for the particular projects,” Mr. Palaniswami added.